Refinance Strome Business Minute with Dr. Jeff Tanner
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- Business
I’m Jeff Tanner, Dean of the Strome College of Business, and this is a Strome Business Minute. With interest rates so low, the mortgage refinance business has been going strong, up some eighty four percent. Fannie Mae and Freddie Mac, the two largest purchasers of mortgages, though, just slapped an additional half a percent fee on cash-out refinances, claiming the COVID-induced recession adds risk. The two government-sponsored organizations are forecasting an increase in losses on qualified loans due to recession-based defaults. Trade groups denounced the fee, which begins September 1, noting that borrowers who haven’t locked in their refinancing will have to pay the fee, expected to average fourteen hundred dollars. Still, a Zillow spokesperson told Barron’s that the refinance market is likely to remain hot and Forbes expects rates to fall even more. Lenders could choose to absorb the fee, so shop around and pay attention to the closing costs. This Strome Business Minute is presented by the Strome College of Business at Old Dominion University.
I’m Jeff Tanner, Dean of the Strome College of Business, and this is a Strome Business Minute. With interest rates so low, the mortgage refinance business has been going strong, up some eighty four percent. Fannie Mae and Freddie Mac, the two largest purchasers of mortgages, though, just slapped an additional half a percent fee on cash-out refinances, claiming the COVID-induced recession adds risk. The two government-sponsored organizations are forecasting an increase in losses on qualified loans due to recession-based defaults. Trade groups denounced the fee, which begins September 1, noting that borrowers who haven’t locked in their refinancing will have to pay the fee, expected to average fourteen hundred dollars. Still, a Zillow spokesperson told Barron’s that the refinance market is likely to remain hot and Forbes expects rates to fall even more. Lenders could choose to absorb the fee, so shop around and pay attention to the closing costs. This Strome Business Minute is presented by the Strome College of Business at Old Dominion University.